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Thursday, 10 July 2014 00:00

GA Court Orders State Farm to Pay for Breach of Contract

A Georgia state court has ordered State Farm to pay their policyholder $40,508 — $30,000 of which was for attorney’s fees — after a jury found the insurer had breached its contract and acted in bad faith with their policyholder.

Japonica Roberts brought the suit against State Farm after the insurance company failed to pay for about $4,000 in repairs that Hernandez Collision Center in Savannah, GA, had completed.

“It is refreshing to see the results in this case and know that a jury of our peers awarded Mrs. Roberts for the hardship caused by her insurer,” said April Hernandez, AAM at Hernandez Collision. “While Hernandez Collision Center gladly works with all insurers, our responsibility is to our customers to ensure all damages to their vehicle is repaired properly and thoroughly.  We feel it is also our professional responsibility and moral obligation to help customers like Mrs. Roberts when they are treated unfairly.  We congratulate Mrs. Roberts on her courage and conviction and are thankful that we could help her in this endeavor.”

The final judgment awarded to Roberts included $5,508 for breach of contract, $5,000 as a bad faith penalty and $30,000 for attorney fees. In all, State Farm will pay approximately $40,508.

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